HMRC’s use of dawn raids has increased by 34% over the last five years, as it pursues tougher targets for tax evasion prosecutions, according to figures obtained by Pinsent Masons.
HMRC’s use of dawn raids has increased by 34% over the last five years, as it pursues tougher targets for tax evasion prosecutions, according to figures obtained by Pinsent Masons. The total number includes both ‘white collar’ tax evasion involving wealthy individuals and businesses and other forms of tax and duty evasion, such as the illegal trade in cigarettes and alcohol and benefit fraud.
Despite the long-term increase, the figures show a fall over the last year in the number of such raids relating to white collar tax evasion. Jason Collins, head of tax at Pinsent Masons, believes this indicates a change of approach by HMRC, who are starting to apply for production orders to obtain documents, rather than go for ‘expensive and disruptive raids’. Production orders allow HMRC to apply to a judge for an order requiring the handing-over of specific documents.
Nevertheless, Collins added, there may be an increase in raids when the new corporate criminal offence of failure to prevent the facilitation of tax evasion becomes operational on 30 September this year. ‘By raiding premises, HMRC not only hopes to be able to seize the proof it needs to build its case, but also to clearly show strength and intent which should act as a deterrent to others’, he said.
HMRC’s use of dawn raids has increased by 34% over the last five years, as it pursues tougher targets for tax evasion prosecutions, according to figures obtained by Pinsent Masons.
HMRC’s use of dawn raids has increased by 34% over the last five years, as it pursues tougher targets for tax evasion prosecutions, according to figures obtained by Pinsent Masons. The total number includes both ‘white collar’ tax evasion involving wealthy individuals and businesses and other forms of tax and duty evasion, such as the illegal trade in cigarettes and alcohol and benefit fraud.
Despite the long-term increase, the figures show a fall over the last year in the number of such raids relating to white collar tax evasion. Jason Collins, head of tax at Pinsent Masons, believes this indicates a change of approach by HMRC, who are starting to apply for production orders to obtain documents, rather than go for ‘expensive and disruptive raids’. Production orders allow HMRC to apply to a judge for an order requiring the handing-over of specific documents.
Nevertheless, Collins added, there may be an increase in raids when the new corporate criminal offence of failure to prevent the facilitation of tax evasion becomes operational on 30 September this year. ‘By raiding premises, HMRC not only hopes to be able to seize the proof it needs to build its case, but also to clearly show strength and intent which should act as a deterrent to others’, he said.
